A new scandal is rocking DraftKings, the famous online betting platform. The company is at the centre of a lawsuit brought by a New York citizen, Jeffrey Wan. Wan accuses the company of violating privacy laws by sharing users’ personal data with Facebook without their consent.
The charge: Illegal data sharing with Facebook
On 26 February 2025, a class action was filed against DraftKings. The case is based on the company’s use of tracking technologies, such as Facebook Pixel and the Conversions API, to collect detailed data on user behaviour. These tools gave Facebook access to sensitive information about how users interacted with video content on the online gaming platform, without their knowledge or prior consent.
Jeffrey Wan, the plaintiff, explains that this information sharing violates the Video Privacy Protection Act (VPPA), a US federal law that protects users’ privacy from companies that exploit video content, such as video stores. Adopted in 1988, this legislation prohibits the disclosure of information about video rentals without the explicit consent of the user. In the case of DraftKings, however, it was the viewing habits of users that were passed on to Facebook, an action that the complainant considers illegal and prejudicial to users’ privacy.
DraftKings’ position: request to dismiss the complaint
In response to this accusation, DraftKings has asked the court to dismiss the case. The company disputes the idea that data sharing violates the VPPA, arguing that the information collected was necessary to improve its services and targeted advertising. According to DraftKings, the tracking tools used are standard in the digital marketing industry and do not constitute an invasion of privacy.
The legal dispute raises the question of whether common practices in advertising technology can be considered breaches of privacy laws. The case could potentially set a legal precedent for the way online gaming companies, as well as other industries, manage their users’ personal data.
A similar situation in the UK
The UK has also been rocked by a scandal highlighting questionable personal data sharing practices between online betting sites and Meta, Facebook’s parent company. A recent investigation by The Observer revealed that numerous betting sites, including household names such as Bwin, 10Bet and Hollywoodbets, used the Meta Pixel to collect sensitive information about users. This data is then passed on to Meta without the explicit consent of users, in breach of strict privacy regulations.
Tests carried out by investigators revealed that out of 150 UK gambling sites surveyed, 52 were transferring data to Meta without obtaining prior consent from users. This practice calls into question the integrity of the consent systems used by these sites, as although consent banners are displayed, they do not appear to prevent the transfer of sensitive information to Meta’s servers.
The legal consequences and the reaction of the authorities
This case immediately attracted the attention of UK regulators. Iain Duncan Smith, an influential Member of Parliament, expressed his frustration by claiming that the online gambling industry was ‘out of control’ and that the regulators were unable to enforce the laws effectively. Meanwhile, the Information Commissioner’s Office (ICO), the data privacy regulator, has launched an investigation into the use of the Meta Pixel, with potential fines of up to £500,000 for offending companies.
Data privacy expert Wolfie Christl also strongly criticised Meta’s involvement in these practices, pointing out that even with consent, sharing data with Meta remains a risky move, as it allows the company to profile users for commercial purposes. The fact that this data was collected without explicit approval is, in his view, a serious violation of users’ rights.
Following the revelations, some companies such as Bwin reacted quickly, attributing the data leak to an internal technical problem which they have now corrected. However, other companies such as Hollywoodbets have not changed their practices, and tests have shown that data continues to be transferred to Meta without user consent.
What are the consequences for the online gaming sector?
If the court rules in favour of Jeffrey Wan in this case, it could have major repercussions for the online gaming industry and, more broadly, for the digital sector as a whole. Companies like DraftKings could be forced to completely rethink the way they handle user data, with possible implications for their marketing strategies.
Other cases involving DraftKings
DraftKings has been involved in several other legal scandals in recent years.
One of these involves accusations of illegal closure of user accounts. Players reported that their accounts had been closed without explanation or the possibility of recovering their funds. According to the complaints, the platform failed to comply with its own terms and conditions, resulting in considerable financial losses for some users.
Another involved a family ruined after a series of bets on DraftKings. An investigation revealed that the company’s marketing practices allegedly pushed players to bet sums they could not afford, leading to significant losses.